The Sinestro Corps is a mirror organization to the Green Lantern Corps. Its members are chosen from those who can instill great fear and are given Qwardian Yellow Power rings. They are considered to be the evil equivalent of the Green Lantern Corps.
The Guardians are keeping Sinestro because it's the only distraction that can overshadow the fact one of them were killed by a green lantern. With Sinestro they know there will be another inevitable war between both lanterns, fear and willpower...and as everyone knows, a war is a great way to dismiss what's actually going on.
@ManlyScream: That is the most likely answer, given they ousted Hal because they were afraid of him, in spite of the fact he fixed their mistakes many times in the past.
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